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Government subjects investors to technology transfer rules

Tempo - June 4, 2020

Francisca Christy Rosana, Jakarta – The Coordinating Minister for Maritime Affairs and Investments Luhut Pandjaitan assured that future foreign investors will be required to transfer technology. He said this is the partnership scheme for capital investments.

"I would often converse with my acquaintances who are domestic and international investors and tell them that Indonesia is a nation that opens to any form of partnership and with whoever. However, they also have a responsibility," said Luhut on Wednesday, June 3.

The reasoning behind his statement comes from the integrated industrial area with added value in Morowali, Konawe, and Weda Bay, which focuses on raw materials essential to the lithium industry, nickel.

Luhut Pandjaitan projects that the three locations will be able to absorb more than 100 percent by 2024 which harbors Indonesia's hope to become the second-largest lithium battery exporter in the world.

The challenges facing that hope come to how to sustainably develop the industry, "Which is the lack of workforces with a bachelor or diploma degrees in engineering," said the coordinating minister.

Citing the data from the Central Statistics Agency (BPS), Luhut said that 2019 saw 52.4 million of Indonesia's workforces mostly consist of people with lower education backgrounds; 12.61 million college graduates; and 3.6 million with diploma degrees.

Source: https://en.tempo.co/read/1349572/govt-subjects-investors-to-technology-transfer-rules